Essel Propack Limited Q1FY18 Earnings Update

- In constant currency terms the quarter revenue grew 12.3% over previous year as against reported 6.1%, reflecting significant appreciation of INR against multiple currencies, in which the Company has operations viz. appreciation of INR against EGP 52.7%, GBP 14.1%, PHP 10.0%, RMB 8.3%, EURO 6.2%, MXN 6.1%, USD 3.7%, PLN 2.7%, COP 1.3%. The revenue growth of 12.3% includes 9% growth on account of EDG acquisition. But for the GST impact in India (estimated loss of revenue INR 165 Million), the constant currency revenue growth would have been 15.4%.

- EBIDTA in constant currency grew 13.5 as against reported 6.7%, a swing of 6.8%. But for GST impact (estimated loss of EBIDTA INR 50.5 Million) the EBIDTA in constant currency would have grown by 18.9%.

- EBIT in constant currency grew 2.9% as against reported -3.5%, a swing of 6.4%. But for GST impact (estimated loss of EBIT INR 50.5 Million) EBIT in constant currency would have grown by 10.8%.

- PAT in constant currency grew 3.0% against reported -8.9%, a swing of 11.9%. But for GST impact (estimated loss of profit INR 32.0 Million) the PAT in constant currency would have grown by 12.2%.

- Net Debt as at June 17 end stood at INR 6306 Million lower compared to INR 7035 Million at March 17 end, a reduction of INR 729 Million.

- ROE and ROCE on TTM basis is at 17.8% and 17.0% respectively.

The quarter has been impacted by GST linked destocking in India and weaker offtake in US and Europe. Further, significant appreciation this quarter in Indian Rupee against various currencies has depressed the reported performance on account of translation impact. However, we are seeing traction in volumes in major markets in Germany, US and China, which should help improve performance in coming months.

Shares of ESSEL PROPACK LTD. was last trading in BSE at Rs.248 as compared to the previous close of Rs. 239.9. The total number of shares traded during the day was 10247 in over 262 trades.

The stock hit an intraday high of Rs. 249.45 and intraday low of 235.5. The net turnover during the day was Rs. 2497456.